Welcome to CoreLogic’s update on Australia’s housing market for June 2017. CoreLogic’s May results provided further support that the pace of capital gains is losing some momentum, particularly in Sydney and Melbourne where housing market conditions have been the hottest. According to CoreLogic’s home value index, capital city dwelling values slipped 1.1% lower in May, which was the largest month-on-month decline in 18 months.

It’s important to note that May has historically been a seasonally weak month of the year. Adjusting for this seasonality suggests capital city dwelling values were flat rather than falling in May, however there has been a noticeable easing in the trend rate of growth as well as other indicators such as auction clearance rates, transaction volumes, housing finance and consumer sentiment.

CoreLogic reported further slippage in dwelling values over the first month of 2018, with national dwelling values recording their second consecutive month on month decline. After dwelling values held firm in October and November, they slipped by a third of a percent in both December and January to be down 0.7% from their peak.